Honda to Make India Its Largest Two Wheeler Operations Hub

Published By : 07 May 2015 | Published By : QYRESEARCH

Honda Motor aims to expand its production capacity in India by 40% during the next two years. The company is planning to invest Rs1,775 crore and make India its largest two wheeler operations hub. Honda Motorcycle and Scooter India, Honda Motor’s local subsidiary in India is the second largest two wheeler unit of the company, after Indonesia. This unit contributes one-fourth of the overall two wheeler sales of the company across the globe. However, the India unit has displayed rapid growth and has registered a 20% rise in its sales in the fiscal 2014-15. The company has set the target to sell 4.7 million units this financial year. Blaming the production constraints as its inability to capitalize the growing Indian two wheeler market, Honda has focused on building its largest operational unit in India. 

According to Keita Muramatsu, the president and chief executive of Honda Motorcycle and Scooter India, the subsidiary aims to become the largest for Honda. He mentioned that even though the other manufacturing units have been operating at the peak level, the company has not been able to meet the growing consumer demand in India. The two wheeler manufacturer aims to expand its Bengaluru unit in India as well as set up the fourth manufacturing unit which will be the largest scooter manufacturing unit of the world. In India, Honda’s biggest competitor is Hero MotorCorp., which registered sales of 6.43 million two wheeler units in the last financial year. Honda is also planning to launch nine new models in India.
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